As the cryptocurrency sector continues to boom, more startups and crypto exchanges have been opening. One new crypto exchange that recently launched is UPcoin, which officially opened live trading on April 23.
UPcoin first began marketing its exchange after the new year. The company posted advertisements on Bitcointalk.org, Reddit, Twitter, Facebook, and Telegram. In particular, the exchange touted its promotion of $500 worth of trading fees to the first 10,000 people who signed up. It also has a referral system where users receive 50% of the trading fees generated by referrals. Though many in the crypto community were skeptical at first, enough people worldwide signed up for UPcoin to be able to proceed to beta testing of its trading platform. The company promotes itself as “the first advanced cryptocurrency exchange.”
After several weeks of beta testing, demo trading and reconfigurations, the exchange opened for real trading on April 23.
Interested in UPcoin? Here’s a quick rundown of the project:
Platform & Development
UPcoin currently supports deposits of 29 cryptocurrencies in its exchange wallet and lists nearly 100 trading pairs on its exchange. Supported coins include the majors as well as popular altcoins like Tron (TRX), Dentacoin (DCN), and OmiseGO (OMG). Though UPcoin currently does not support fiat currency deposits, they plan to add fiat trading and institute Know-Your-Customer (KYC) policies in the next quarter.
UPcoin states that its matching engine can process up to 2.4 million orders per second, which is higher than notable exchanges including Binance (1.4 million) and Kucoin (2.0 million). Additionally, UPcoin runs on Amazon cloud infrastructure to assure future scalability.
UPcoin seems to have reasonable trading fees. Its advertised maker fee is 0.1%, and its taker fee is 0.2%. Both fees are below average for crypto exchanges, though more established exchanges like GDAX offer discounts for higher trade volume. UPcoin also enforces reasonable minimum limits of 0.01 Ether (ETH) for deposits and 0.003 ETH for withdrawals. To date, Upcoin’s most liquid trading pairs are TRX/ETH with a volume of 9.44 ETH and DCN/ETH with a volume of 1.19 ETH. The rest of its trading pairs have little to no volume thus far.
The website interface is clean and easy to understand. Its charts are supported by TradingView, and the order book is readable. The order form used to place orders is simple, showing options for price, amount, total, and fees. UPcoin allows both market and limit orders. For sell orders, it allows stop loss and take profit options. Open positions and order history are shown at the bottom of the page, along with the number of users online. Finally, UPcoin states it is working on an application programming interface (API) so that users can export keys to trade through external websites in the future.
The UPcoin team has not unveiled any of its members’ identities, but claims that they are “a group of up to 30 professionals with various backgrounds: managers, software engineers, designers, support reps, advisors and other professionals that might be contracted on an ad hoc basis.”
Ultimately, whether UPcoin succeeds or fails depends on user demand. First, UPcoin needs to be transparent about its team members and funding. Second, it needs to keep aggressively marketing its platform, a key to Binance’s rapid adoption. Third, current users will need to drastically increase volume to provide liquidity for new traders. Fourth, UPcoin should strive for compliance with financial regulations, as fiat offerings will attract many more new users. UPcoin is still very new, so it has plenty of time to develop into a competitive and advanced exchange.
Follow us: Telegram | Twitter | Newsletter
Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.